Car Expenses

Anonymous asks:  If I have to use my car for work, can I write off things like depreciation, insurance and maintenance?

Deb answers:  Yes you can!  The IRS lets you choose to use their standard mileage rate or your actual expenses.  

As of  Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) are:

• 50 cents per mile for business miles driven
• 16.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The new rates for business, medical and moving purposes are slightly lower than last year’s. 

If you were reimbursed by your employer for business miles driven at a lower rate than what the IRS allows, you might be able to deduct the difference.